Sabana Shariah Compliant REIT (SGX: M1GU) (Sabana REIT for short) has a unit price of S$0.28 at the time of writing.
At that price, Sabana REIT is valued at a price-to-book (PB) ratio of 0.5 and has a distribution yield (or technically known as distribution yield for REITs) of 10.4%.
The REIT looks cheap based on its latest valuation.
But is Sabana REIT cheap for a reason?
Let’s find out using my 10-step guide to pick the best Singapore REITs.
As a summary, here are the 10 steps I use to pick the best Singapore REITs:
Growth in Gross Revenue and Net Property Income Growth in Distribution Per Unit Property Yield of Between 5% and 9% Gearing Ratio of Below 40% Interest Coverage Ratio of Above 5x Healthy Portfolio Occupancy Rate Positive Rental Reversions Presence of Growth Prospects Acceptable Price-to-Book Ratio Distribution Yield of Above 5% Business...